Question: Solve this decision tree. What is the expected value at node 2? 40% Chance of a Good Economy Profit = $6M Expand Factory Cost -

Solve this decision tree. What is the expected

Solve this decision tree. What is the expected value at node 2? 40% Chance of a Good Economy Profit = $6M Expand Factory Cost - $1.5 M 2 .6 60% Chance Bad Economy Profit - $2M Good Economy (40%) Protit - 3M Don't Expand Factory Cost-So Bad Economy (60%) Profit = $1M O 3.6M O 6M O 1.8M 8M

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